NOVEMBER 2015 • BROUGHT TO YOU BY COUNT
Get your retirement timing right
The perfect retirement revolves around getting three things right – the financial, the
emotional and the practical. Figure these out and the timing of your retirement will
become clear.
Or it may suit you better, in the years before retirement, to
simply remove a certain
amount from your current after-tax income, perhaps $100 per
week, for a rough guide to what you might require. There are
various ways to figure out how much money you’ll need in
retirement and each is unique to the individual’s needs. This
is where your financial planner also becomes very valuable.
Your adviser will not only help you figure out the amount of
income you’ll need in retirement. Once you are retired they
will also consider the current economic and regulatory
environment to ensure your investments are properly
diversified and
spread between defensive and growth asset classes, so they
continue to deliver the income you need over the period of
your retirement.
How will you get what you really need?
During your downtime over the upcoming holiday period, it
could pay to consider how your retirement might look and
when it will likely happen, no matter how far away it might be.
This helps to answer one of life’s big questions – when
exactly will you retire? Fortunately, these days there are a lot
of options in terms of timing of and transitioning into
retirement. In this story we look at the three big areas of
consideration – wealth, emotional health and practical issues.
When can you afford it?
The amount of money required for retirement varies from
individual to individual. Are you after a simple life filled with
basic pleasures or an outrageously luxurious celebration of
finally being out of work? There are many ways to figure out
how much money you’ll need in retirement. None are perfect
but at least they offer an idea. Current figures from The
Association of Superannuation Funds
Australia (ASFA)’s retirement standard1 say those aged
around 65 and desiring a comfortable lifestyle will require
$42,861 annually for a single and $58,784 for a couple.
The idea of leaving work is often a wonderful one, but
sometimes you don’t realise the many benefits of a job or a
career, until you leave. Often the biggest change for those
leaving work, the most unexpected shock, is the lack of social
connection. We all know about the importance of self-worth,
which jobs often give us, but just as vital is the emotional
satisfaction we gain from having people around us.
Social contacts from work will need to be replaced with new
relationships. Where are these going to be found? Many
discover new and meaningful connections by volunteering.
Others do it in the sporting arena, perhaps in golf or bowling,
swimming or cycling clubs. And some join hobby groups.
Those that find great satisfaction in the emotional side of
retirement often begin experimenting with such social
connections – clubs, volunteering etc – before they retire.
They build new networks before leaving the old ones. This is
particularly important for those that are single. Couples might
consider staggering their retirements, to allow each partner to
ease into their new lifestyles.
Day-to-day practicalities
Immediate retirement – going from full-time work to full-time
leisure – is becoming a thing of the past. While few people
choose to work full-time beyond the age of 65, many retirees
say that they retire several times over, between the ages of
65 and 70, as their skills and knowledge are put to good use
on a part-time or casual/consultant basis. Working a few days
a week has many benefits beyond financial.
It is good for an individual’s self-esteem, social connection
and ongoing learning. It is also good for industry in terms of
knowledge retention and diversity. And for once in your life,
the choice of where and when to work is yours.
These days ‘semi-retirement’ is becoming the new retirement.
Whether that means working, volunteering, transitioning to
retirement or turning a hobby into a side business, its benefits
are immeasurable.
So take some time to figure out the things you can control
about your retirement – financial, emotional and practical –
and other considerations, such as timing, will fall into line
behind them.
Speak to us for more information
Speak to your Mogg Osborne Financial Adviser if you would like to understand more about how this
information might impact your financial situation.
Important information
Mogg Osborne Pty Ltd (ABN 70 131 399 516) is a Corporate Authorised Representative of Count Financial Limited ABN 19 001 974 625, AFSL
227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a
financial adviser before making a financial decision. This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL
227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count
Wealth Accountants® are trading names of Count. Count advisers are authorised representatives of Count. Information in this document is
based on current regulatory requirements and laws, as at 20 September 2015, which may be subject to change. While care has been taken in
the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance
on this document.